AEPC seeks budget boost to propel India’s apparel exports
03 January 2025, Mumbai
India’s apparel sector is poised to capitalize on evolving global supply chains, stated Sudhir Sekhri, Chairman of AEPC. He emphasized the sector's potential to attract global buyers amid the China Plus One strategy and challenges in Bangladesh. “This Union Budget offers a crucial opportunity for long-term policy support to drive export growth,” Sekhri noted.
Highlighting industry demands, AEPC Secretary General Mithileshwar Thakur underscored the need for strategic actions to upscale production, attract investments, and reform labor policies.
Key demands include:
Interest equalization: Continuation and enhancement of the scheme with a 5 per cent rate to mitigate high capital costs.
Tax concessions: Extension of the 15 per cent concessional tax rate under Section 115AB to boost garment manufacturing.
IT act amendment: Exemption of exporters from Section 43B(h) to address tax liabilities caused by delayed payments.
Simplified imports: Streamlining IGCR rules for trims and embellishments with a 10 per cent wastage allowance.
E-commerce exports: Raising the export value cap to Rs 25 lakh per consignment and extending the realization period to 12 months.
Zero customs duty: Eliminating duties on imported garment machinery to enhance competitiveness.
Green initiatives: Introduction of a Green Transformation Scheme offering soft loans for ESG-compliant manufacturing upgrades.
AEPC urges the government to align policies with evolving global trends to cement India’s position as a leading apparel exporter.
